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Offer in Compromise: This program authorizes the IRS to settle liabilities for less than the full amount owed. In order to qualify for the Offer in Compromise program your business must be no longer operation and inactive. In rare circumstances, the IRS will accept an Offer in Compromise if the taxpayer no longer has an association or controlling interest in entity that incurred the liability. Further restrictions to the program apply such as having not enough current saleable assets or a future earning potential to settle the liability and not being able to pay more than the accumulating interest on an annual basis. Furthermore, the program will only apply to liabilities that are not in dispute and not the result of fraudulent activity. Because of these restrictions, Offer in Compromises are screened heavily and very few are accepted.
An IRS Offer in Compromise consists of a two step process, which includes filing an application along with a detailed financial statement. Although the application forms are fairly straight forward, Offer in Compromises are based on a strict formula that the IRS Offer Specialists follow. During your client consultations with our staff, using the same formula as the IRS, we perform a pre-analysis of your financial information and other factors that could affect your offer. Unlike some firms, our office policy is not to submit offers unless they have a reasonable chance of acceptance by the IRS. Assets or personal living expenses, no matter how ordinary or necessary to your livelihood, are often grounds for offer rejection. However, we strategize with our clients to assure their offers have the best chances for acceptance and that you meet all of the criteria of the IRS.
Once your application has been assigned to an Offer Specialist, we work diligently to cease any collection activity being taken against you and negotiate acceptance at the lowest possible dollar amount. Our advocacy skills combined with an expert knowledge of California tax law and internal IRS procedures have ensured our success in negotiating offers. In the history of our firm, we have never lost an offer in compromise.
For more information on an offer in compromise go to http://www.irssolution.com/offers-in-... on our website.